- The Swedish Krona rose to a 2-week peak following the release of upbeat inflation data.
- Sweden's consumer price index increased 0.4 percent in July, after declining 0.1 percent in the previous month.
- However, on an annualised basis, inflation rate edged down to 1.7 percent in July from 1.8 percent in June but above market expectations of 1.5 percent.
- USD/SEK trades 0.3 percent up at 9.5614, having hit a low of 9.4847 earlier, its lowest since July 30.
- The pair breached 21-EMA (major support) but trimmed losses to trade above 9.5200
- 55-EMA is now acting as major support.
- Momentum studies show bullish trend, with RSI higher at 55.95 levels and Stochs indicating a bullish crossover.
- Immediate resistance is located at 9.6005 (trendline joining 9.7000 and 9.6427), close above could take it near 9.6512 /9.7000 (August 1 High).
- On the lower side, support is seen at 9.4701 (55-EMA), break below could see a reversal in trend.
Recommendation: Good to buy on dips around 9.5200, with stop loss of 9.5071 and target price at 9.6005.
